Francesco Silvestri, ISB: ‘Strategic operations with Mollificio Mantovano and Felsineo’

The Italian (and European) metalworking sector is navigating a challenging time, as reflected in data published by Federmeccanica for the first half of 2024. The first quarter recorded a year-over-year contraction of 3.9%, followed by a further 3.4% decline in the second quarter. In this fragile environment for manufacturing, I had the opportunity to interview Francesco Silvestri, owner of ISB Srl and current President of the Italian springmakers association ANCCEM. We discussed the company’s strategy, particularly its recent corporate initiatives, marking a pivotal step to strengthen ISB’s competitiveness and growth capacity in an increasingly demanding market.

Let’s start with the general trend. How has this year been?

'This year has undoubtedly been challenging, given the sector's dynamics. The automotive industry is struggling, and other sectors are similarly under pressure. This downturn is pervasive, affecting both Italy and international markets. Germany, traditionally a key reference point for the Italian market, is currently at a standstill.'

Is there a sector that is performing better than others?

'No, I would say they are all more or less declining. The typical application areas for our springs—such as automotive, household appliances, hydraulics, and automatic machines—are all suffering.'

How much does export contribute to your revenue?

'About 30% of our turnover comes from the direct export of our products abroad.'

Can we hope for a brighter outlook for next year?

'Making predictions is very difficult. There are too many unknowns.'

What’s your angle, then?

'The coming years will be pivotal for corporate reorganizations and generational transitions. I am a firm believer in aggregation and the formation of groups, and I anticipate this trend becoming increasingly prominent. In a market marked by decline, intensified competition, and widespread overproduction capacity, growth will primarily be driven by acquisitions and mergers. Those who can plan ahead today will reap the benefits in the future. To me, aggregation is not just about forming partnerships or alliances; it also involves acquiring equity stakes. This approach, in my view, is the most effective way to tackle challenges, ensure our objectives are truly aligned, and strengthen corporate stability. With this in mind, we have undertaken two landmark and strategic operations in recent months.'

What specific operations have you undertaken?

'The first was the acquisition of a minority stake in Mollificio Felsineo, a Bologna-based springmaking company founded in 1970, which will continue to operate independently. The second involves the merger of ISB with Mollificio Mantovano, which will become fully operational on January 1, 2025. Mollificio Mantovano is also a historic company, founded in 1953. Located on an 8,000 m² site in Suzzara (MN), it produces compression, extension, torsion, wire-formed, and strip springs. The processes of Mantovano and ISB will be integrated while keeping both facilities operational, which will gradually become more specialized over time. The goal is to expand the product range and create a unified production management system to ensure greater overall efficiency.'

In 2020, you announced a significant initiative: the opening of a production site in Brazil. How has it progressed since then?

'After four years, the plant in Brazil is fully operational and growing. It is starting to stand on its own, serving local clients despite operating in a challenging environment.'

Future prospects: what are your goals?

'The two operations with Felsineo and Mantovano are crucial for us, but our efforts won’t stop there. We will evaluate further acquisition or merger opportunities as they arise, driven by the belief that looking ahead and establishing a solid structure is essential to addressing market challenges and ensuring the company's growth and sustainability.'

In the top photo, from left to right: Francesco Silvestri of ISB, Michela Mazzanti of Mollificio Felsineo, and Alessandro Belladelli of Mollificio Mantovano.